Additionally, you want to take advantage of the compounding interest that only being young and having time for growth will allow.

Hard work can have compounding effects just the same as investing.

@Bonnie RhodesMy Investment type and History:4th grade-my friends mom came to our school and taught us about compound interest.

I prefer the Warren Buffett for real estate model: invest in fundamental quality income producing assets in quality locations, never sell, unless your original thesis was wrong or neighborhood changes/can't attract quality tenants, reinvest all profits and compound your returns develop significant wealth over time (time and developing positive habits have compounding affects).

I'm imagining that guy covered head to toe in joint compound and paint.

Check out https://www.bankofamerica.com/home-loans/mortgage/budgeting-for-home/buying-mortgage-points-lower-rate.goThe banks want your points because they know the true meaning of the phrase "a dollar today is worth more than a dollar tomorrow"Using the BoA example:They use the concept of "break-even" from a "the bank wins perspective"If you can make 10% on your money by investing in real estate.The $2000 you saved $9000 over 30 years... turns into $39,674.80 over the same 30 years at 10% compounded interest.The $4000 that saved you $12,444 shows up in 30 years as $79,349.60.At even rates the first point in the above example is a good buy

Those transaction costs can put a big ding in long-term compounding.. even without the tax implications, on a 1031..

The nice thing here is that you can re-invest the interest income in the fund so you have compounding growth.  

What I determined from this chart is that if I had taken the value of the house in 2006, and put it into some type of stock or mutual fund where interest is compounded, then over a ten year period I'd only have averaged a 1.3% annualized gain.

Because of the nature of compounding.